Curve DAO price is set for a rally following a break above the descending wedge pattern
|- Curve DAO price breaks out of the descending wedge pattern, signaling a bullish move.
- On-chain data shows that CRV Daily Active addresses are rising, suggesting greater blockchain usage.
- A daily candlestick close below $0.225 would invalidate the bullish thesis.
Curve DAO (CRV) price broke out of the falling wedge pattern on Monday and trades up by 0.26% to $0.303 on Tuesday. On-chain data shows rising daily active addresses, indicating increased blockchain usage, which could signal a potential rally in the coming days.
Curve DAO price shows potential for a rally
Curve DAO price broke above the falling wedge pattern on Monday. This pattern is formed by connecting swing highs and lows with trendlines from mid-June to August. A breakout of this pattern signals a potential bullish trend. As of Tuesday, CRV is trading slightly higher by 0.26%, at $0.303.
If the upper trendline of the falling wedge pattern holds as throwback support at around $0.275, CRV could rally 40% from that level, targeting $0.387, its 61.8% Fibonacci retracement level drawn from a swing high of $0.515 from May 25 to a swing low of $0.180 from August 5.
On the daily chart, the Relative Strength Index (RSI) is currently above the neutral level of 50, and the Awesome Oscillator (AO) is also approaching its threshold. Both indicators must maintain their positions above average for the bullish momentum to be sustained. This scenario would contribute additional momentum to the ongoing recovery rally.
CRV/USDT daily chart
Santiment's Daily Active Addresses index, which helps track network activity over time, aligns with the bullish outlook noted from a technical perspective. A rise in the metric signals greater blockchain usage, while declining addresses point to lower demand for the network.
In CRV's case, Daily Active Addresses have risen by 73% in one day. This rise is the highest since mid-June and indicates that demand for CRV's blockchain usage is increasing, which could propel a rally in Curve DAO's price.
CRV Daily Active Addresses chart
Meanwhile, Artemis Terminal data shows that Curve DAO's decentralized exchange (DEX) saw a record trading volume of $1.7 billion on August 5, the highest this year, signaling a surge in trader interest and liquidity that bolsters the platform's bullish outlook.
CRV DEX trading volume chart
Despite the bullish thesis signaled by both on-chain data and technical analysis, if Curve DAO's daily candlestick closes below the $0.225 daily low of August 8, the outlook will shift to bearish. This scenario could lead to a 20% crash to retest its low of $0.180 on August 5.
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